Eisner eyes legal options

Eisner eyes legal options

Eisner eyes legal options

One of RateHub's largest broker clients is contemplating legal action against a former employee now tapped to head the rate site’s online brokerage, currently in development.
 
“We’re now weighing our options in terms of our legal options,” Dan Eisner, CEO of True North Mortgage told MortgageBrokerNews.ca. “We have retained counsel to pursue our options regarding James’ non-compete clause.”
 
James Laird stepped down from his post as COO with True North Mortgage in late June and -- at the time -- the split seemed amicable, according to Eisner, who said the plan had been in the works for months.
 
“This has been happening over the past four or five months," Eisner told MortgageBrokerNews.ca at the time. "It’s more of a surprise how long (James) stayed … his initial commitment to True North Mortgage was supposed to be a three-to-four year commitment.”
 
However, the announcement that Laird will head-up RateHub.ca’s fledgling mortgage brokerage arm caught Eisner off guard he told MortgageBrokerNews.ca in an exclusive interview Tuesday – especially due to the fact that Laird had signed a non-compete clause. Many brokers using the popular rate site have already begun to question its decision to join them in offering broker services on the site.
 
According to Alyssa Richard, CEO of RateHub, Laird had been tapped to make the transition to the popular rate comparison company while still working for True North.
 
“(James) had joined afterwards but we did have several conversations with him about joining RateHub and have just firmed up what his role will be,” RateHub CEO Alyssa Richard told MortgageBrokerNews.ca. “We also considered him looking at originating B-mortgages as well.”

Related:

Brokers react to RateHub announcement
Major broker announces executive appointment

 

 
 

17 Comments
  • Dave 2014-07-16 11:02:59 AM
    This should be interesting....
    Post a reply
  • AnthonyC. 2014-07-16 11:12:22 AM
    ...and it begins...
    Post a reply
  • Jake Abramowicz 2014-07-16 11:20:36 AM
    " “We also considered him looking at originating B-mortgages as well.”

    This is a very hard thing to do IMO, and not a good strategy with respect to a site like ratehub, that has made its money on shopping rate only. I'll let Alyssa and her team figure out why this is the case, though.
    Post a reply